Mexico data centre market on course for US$1.3 million valuation by 2029

Mexico data centre market on course for US$1.3 million valuation by 2029

The Mexico data centre market is expected to reach a value of US$1.319 billion by 2029 from US$804 million in 2023 – growing at a CAGR of 8.60% from 2023-2029. That’s the projection pitched in a report released by ResearchAndMarkets.com analysing the Mexico data centre market share and upcoming facilities and investments in IT, electrical, mechanical infrastructure, general construction and tier standards. The report also outlines market sizing and investment estimation for different segments.

Queretaro and Mexico City emerge as top destinations for data centre investments from foreign and local data centre providers in the Mexico data centre market.

The report references Mexico’s several special economic zones that provide multiple benefits to investors, such as tax exemptions on infrastructure, land power and others – and support for local labour recruitment.

Also referenced are Mexico’s seven existing submarine cables that connect it with other LATAM countries and the US. Some of the upcoming submarine cables in the country include Bifrost, Gold Data-1 (GD-1)/Liberty Networks-1 (LN-1), Caribbean Express (CX), TAM-1 and TIKAL-AMX3.

The report says Mexico stands at the forefront of renewable energy, harnessing hydropower, solar, wind and geothermal power and the ability to develop green hydrogen and energy storage projects.

The country’s government has set the ambitious goal to reach 35% renewable energy by 2024 – with a target of 50% by 2050.

Companies in Mexico are identified in the report as ‘aggressive’ in adopting AI – with a particular emphasis on ethics, cybersecurity and data protection.

According to Cisco Systems, around 75% of companies in Mexico are keen to adopt AI technologies.

Ascenty (Digital Realty), Equinix, HostDime, Kio Networks, ODATA (Aligned Data centers) and Scala Data Centers are referenced in the report as the major colocation service providers operating data centres across the Mexico data centre market by adding more than 100MW of power capacity.

In 2023, the Mexico data centre market saw data centre investments from Ascenty (Digital Realty), Equinix, CloudHQ, KIO Networks, ODATA (Aligned Data Centers) and Scala Data Centers in more than ten data centre facilities across the country.

In addition, Mexico also witnessed investments from new entrants such as CloudHQ, EdgeConneX and Layer 9 Data Centers.

ResearchAndMarkets.com Mexico data centre market report key takeaways

The Mexican data centre market was estimated to be valued at US$804 Million in 2023.

The growth rate of the Mexican data centre market is 8.6% – with an estimated value of US$1319 million by 2029.

The Mexican data centre market is estimated to be worth US$1319 million by 2029.

Key companies in the Mexican data centre market include Arista Networks, Broadcom, Cisco Systems, Dell Technologies, HPE, Huawei Technologies, IBM, Juniper Networks, Lenovo and NetApp.

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